Does Public Governance Impact Performance? An Analysis of Higher Education Institutions in Brazil

Silva, Lindomar Pinto da

doi:10.1590/1807-7692bar2024230181

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Research Article • BAR, Braz. Adm. Rev. 21 (2) • 2024 • https://doi.org/10.1590/1807-7692bar2024230181 copy

Does Public Governance Impact Performance? An Analysis of Higher Education Institutions in Brazil

Authorship SCIMAGO INSTITUTIONS RANKINGS

ABSTRACT

Objective:

this study investigates how public governance practices influence the performance of public organizations. Defined as a mix of formal and informal mechanisms shaping decision-making in the public sector and encouraging diverse societal participation, public governance aims to enhance management effectiveness and governmental results.

Methods:

panel data regression analysis was applied to assess higher education institutions in Brazil across 2017, 2018, and 2021. Student scores in the National Performance Exam (ENADE) and the Performance Difference Indicator (IDD) were used as performance metrics and dependent variables while governance practices and the public governance index were used as independent variables.

Results:

the data collected at the Federal Court of Accounts (TCU) and the National Institute of Educational Studies and Research Anísio Teixeira (Inep) revealed a positive correlation between ‘monitoring user satisfaction’ and institutional performance, whereas the public governance index presented unexpected results.

Conclusions:

this investigation elicits deeper inquiries on the actual impact of public governance on the performance of public organizations, potentially guiding the implementation of governance actions within them.

Keywords:
public governance; performance; teaching institutions; ENADE; IDD

Mechanisms	Leadership	Strategy	Control
Practices	• Establish the governance model • Promote integrity • Promote leadership capacity	• Manage risks • Establish the strategy • Promote strategy management • Monitor the achievement of organizational results • Monitor the performance of the management functions	• Promote transparency • Ensure accountability • Evaluate stakeholder satisfaction • Evaluate internal audit effectiveness

Variable	Definition	Data source
Percentage of women in the institution	Indicates the percentage of women from each institution who took the ENADE test.	www.inep.gov.br
Percentage of non-white students in the institution	Indicates the percentage of non-white individuals from each institution who took the ENADE test.	www.inep.gov.br
Students studying more than 8 hours per week	Indicates the percentage of students from each institution who took the test and reported studying more than 8 hours per week.	www.inep.gov.br
GDP per capita of the municipality	GDP of each municipality in relation to the number of individuals in the municipality of the organization.	www.ibge.gov.br
Municipality Education Index	An index that measures the educational performance of each municipality as calculated by the Conselho Federal de Administração (Federal Council of Business Administrators) based on official indicators.	https://igm.cfa.org.br/

Variables	Average	Standard deviation	Minimum	1st quartile	Median	3rd quartile	Maximum
Percentage of women in the institution	52.63	9.73	18.95	46.99	53.62	52.63	82.89
Percentage of non-white students in the institution	51.42	22.69	8.62	32.03	53.07	71.11	90.20
Students studying more than 8 hours per week	26.17	9.28	1.47	19.64	24.90	31.98	61.96
GDP per capita of the municipality	30,735.26	14,541.84	7,995.35	20,839.00	26,463.16	40,747.00	87,016.16
Municipality Education Index	5.55	2.28	0	3.97	5.69	7.33	9.93
IDD	2.48	0.36	0	2.95	2.44	3.25	3.70
ENADE	2.81	0.73	0	2.39	2.79	3.25	5.00
Governance structure	0.61	0.25	0	0.48	0.66	0.75	1.00
Leadership capability	0.34	0.26	0	0.12	0.28	0.52	1.00
Integrity	0.47	0.27	0	0.25	0.46	0.66	1.00
Risk management	0.23	0.23	0	0.05	0.15	0.32	1.00
Establishing strategy	0.56	0.25	0	0.42	0.58	0.75	1.00
Promoting strategic management	0.45	0.26	0.02	0.23	0.41	0.63	1.00
Monitoring the performance of management functions	0.37	0.26	0	0.15	0.34	0.54	1.00
Transparency	0.57	0.26	0	0.36	0.57	0.79	1.00
Accountability	0.57	0.24	0	0.39	0.62	0.77	1.00
Effectiveness of internal audit	0.52	0.22	0	0.37	0.51	0.65	1.00
User satisfaction	0.44	0.26	0	0.23	0.42	0.66	1.00
iGovPub	0.47	0.17	0.12	0.35	0.45	0.60	0.96

Explanatory variables	Dependent variable ENADE			Dependent variable IDD
	POLS	Fixed effects	Random effects	POLS	Fixed effects	Random effects
Governance structure	0.214	0.338*	0.245	-0.089	-0.029	-0.084
	(0.185)	(0.202)	(0.179)	(0.110)	(0.144)	(0.111)
Leadership capability	-0.025	-0.061	-0.042	-0.102	-0.037	-0.092
	(0.166)	(0.177)	(0.159)	(0.099)	(0.127)	(0.099)
Integrity	-0.151	-0.002	-0.111	0.011	0.107	0.028
	(0.174)	(0.192)	(0.169)	(0.103)	(0.137)	(0.104)
Risk management	-0.210	-0.488**	-0.343*	0.060	-0.050	0.051
	(0.201)	(0.209)	(0.189)	(0.119)	(0.150)	(0.118)
Establishing strategy	-0.435**	-0.256	-0.352*	-0.099	-0.145	-0.108
	(0.199)	(0.228)	(0.195)	(0.118)	(0.163)	(0.120)
Promoting strategic management	0.021	0.094	0.055	-0.014	0.023	-0.006
	(0.284)	(0.299)	(0.268)	(0.168)	(0.215)	(0.167)
Monitoring the performance of management functions	0.368	0.024	0.243	0.101	0.074	0.093
	(0.271)	(0.277)	(0.257)	(0.160)	(0.199)	(0.160)
Transparency	0.394	-0.188	0.138	0.281	0.002	0.232
	(0.300)	(0.295)	(0.280)	(0.178)	(0.212)	(0.177)
Accountability	-0.906***	0.006	-0.554*	-0.342^*	-0.136	-0.306
	(0.345)	(0.336)	(0.321)	(0.204)	(0.241)	(0.203)
Effectiveness of internal audit	0.010	0.173	0.037	-0.079	-0.040	-0.074
	(0.187)	(0.206)	(0.182)	(0.111)	(0.147)	(0.112)
User satisfaction	0.341**	0.099	0.300*	-0.034	0.100	-0.020
	(0.168)	(0.192)	(0.164)	(0.100)	(0.138)	(0.101)
Percentage of women in the institution	0.002	0.008*	0.004	-0.001	0.002	-0.0002
	(0.004)	(0.005)	(0.004)	(0.002)	(0.003)	(0.002)
Percentage of non-white students in the institution	-0.016***	-0.027***	-0.018***	-0.002^**	0.002	-0.002^*
	(0.002)	(0.008)	(0.002)	(0.001)	(0.005)	(0.001)
Students studying more than 8 hours per week	0.002	-0.012**	-0.003	0.007^***	0.010^**	0.007^***
	(0.004)	(0.006)	(0.005)	(0.003)	(0.004)	(0.003)
GDP per capita of the municipality	0.00000	-0.00000	-0.00000	-0.00000	-0.00000	-0.00000
	(0.00000)	(0.00000)	(0.00000)	(0.00000)	(0.00000)	(0.00000)
Municipality Education Index	0.037**	0.014	0.036**	-0.002	-0.007	-0.002
	(0.017)	(0.031)	(0.018)	(0.010)	(0.022)	(0.011)
Constant	3.544***		3.562***	2.695^***		2.654^***
	(0.345)		(0.365)	(0.205)		(0.214)
Observations	267	267	267	267	267	267
R²	0.373	0.267	0.323	0.118	0.066	0.105
Adjusted R²	0.333	-0.204	0.279	0.062	-0.534	0.047
F Statistic	9.294*** (df = 16; 250)	3.680*** (df = 16; 162)	119.010***	2.091^*** (df = 16; 250)	0.713 (df = 16; 162)	29.214^**

Test	Results - ENADE	Results - IDD
F test	p-value = 2.618e-08	p-value = 0.1106
Lagrange multiplier test (Breusch-Pagan)	p-value = 6.528e-06	p-value = 0.2638
Hausman test	p-value < 2.2e-16	p-value = 0.7142

Test	POLS model	Fixed effects	Random effects
ENADE	p-value = 0.0008735	p-value < 2.2e-16	p-value = 0.1835
IDD	p-value = 0.4875	p-value = 4.201e-16	p-value = 0.5809

Test	POLS model	Fixed effects	Random effects
ENADE	p-value = 0.95	p-value = 0.95	p-value = 0.95
IDD	p-value = 0.4534	p-value = 0.4534	p-value = 0.4534

Explanatory variables	Dependent variable ENADE			Dependent variable IDD
	POLS	Fixed effects	Random effects	POLS	Fixed effects	Random effects
iGovPub	-0.476^**	-0.400^*	-0.508^**	-0.247^**	-0.118	-0.218^*
	(0.215)	(0.237)	(0.205)	(0.124)	(0.166)	(0.125)
Percentage of women in the institution	0.001	0.009^*	0.005	-0.001	0.002	-0.0004
	(0.004)	(0.005)	(0.004)	(0.002)	(0.003)	(0.002)
Percentage of non-white students in the institution	-0.017^***	-0.030^***	-0.019^***	-0.002^**	0.003	-0.002^*
	(0.002)	(0.006)	(0.002)	(0.001)	(0.005)	(0.001)
Students studying more than 8 hours per week	0.002	-0.011^**	-0.005	0.008^***	0.010^**	0.008^***
	(0.004)	(0.005)	(0.004)	(0.003)	(0.004)	(0.003)
GDP Per capita of the municipality	-0.00000	-0.00000	-0.00000	-0.00000	-0.00000	-0.00000
	(0.00000)	(0.00000)	(0.00000)	(0.00000)	(0.00000)	(0.00000)
Municipality Education Index	0.041^**	0.018	0.038^**	-0.002	-0.011	-0.002
	(0.017)	(0.029)	(0.019)	(0.010)	(0.021)	(0.010)
Constant	3.557^***		3.720^***	2.614^***		2.563^***
	(0.337)		(0.356)	(0.194)		(0.204)
Observations	267	267	267	267	267	267
R²	0.325	0.220	0.270	0.096	0.052	0.085
Adjusted R²	0.309	-0.207	0.253	0.075	-0.466	0.064
F Statistic	20.838^*** (df = 6; 260)	8.063^*** (df = 6; 172)	95.950^***	4.603^*** (df = 6; 260)	1.571 (df = 6; 172)	24.080^***

Test	Results - ENADE	Results - IDD
F test	p-value = 1.12e-09	p-value = 0.04422
Lagrange Multiplier test (Breusch-Pagan)	p-value = 1.586e-07	p-value = 0.1172
Hausman test	p-value = 8.373e-09	p-value = 0.5029

Test	POLS model	Fixed effects	Random effects
ENADE	p-value = 0.0004531	p-value < 2.2e-16	p-value = 0.2126
IDD	p-value = 0.5132	p-value = 3.149e-16	p-value = 0.6595

Test	POLS model	Fixed effects	Random effects
ENADE	p-value = 0.733	p-value = 0.733	p-value = 0.733
IDD	p-value = 0.8393	p-value = 0.8393	p-value = 0.8393

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[1] Corresponding author:
Lindomar Pinto da Silva Universidade Federal da Bahia Av. Reitor Miguel Calmon, s/n, 3º Andar, Vale do Canela, CEP 40110-903, Salvador, BA, Brazil